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RE: "The problem with socialism is that you eventually run out of other people's money." - Margaret Thatcher
Perhaps it would be more correct to say, rather than that you run out of other people's money, you run out of "productive" people's money. People who actually produce value will at some point no longer accept the money in the hands of people who produce nothing and only consume (such as government and social program recipients.
Yeah, that is close to what I said at the end of this thread. I eventually said you run out of money you can GET AT.
You mean the rich... the people who amass big stacks of the stuff and thereby cripple the economy? Please explain to me why someone buying things and putting money back into the economy, is bad for the economy.
the rich MAKE the economy. Without them there IS no economy. Unless you like Somalia.
An economy is what creates rich people, you don't need rich people to have a functioning economy.
Somalia is actually a good example of how a more free market can destroy an economy/country. This is because Somalia barely has a functioning government, there is no middle class in Somalia, it is just rich and poor and the rich rule the country while the poor do whatever it takes to survive, leading to crime, theft, piracy, etc... Here is a good article about what is happening in Somalia.
https://globalinequalityandhealth.wordpress.com/2015/04/03/somalia-a-lawless-state-of-inequality/
in which the author of the very BAD , incorrect false but politically correct article states.
The top 100 billionaires of the world had accumulated $240 billion in wealth in 2012,
which is misleading...they DID accumulate....what they created the wealth didn't exist before. Then they began to distribute it. They used it to build factories, hire people and DO STUFF with it. Money doesn't do anyone any good stuffed in a mattress.
I was only sharing that so you would have a better understanding of what is happening in Somalia.
As I have explained in my previous comments, money only moves from person to person within any economy. When a person becomes wealthy all they did is move money from other people to themselves (this can be accomplished in various ways, and yes it may involve building infrastructure and hiring people). They are creating wealth for themselves but that only leaves less money in the economy for other people to earn/spend.
Yes you are correct, that is exactly what happens anytime someone accumulates wealth from the economy, it is like money being stuffed in a mattress. Because they have more money than they can spend it means there is less money within the economy for other people to earn/spend.
And that is exactly what has happened in Somalia, the rich have stuffed all their money in their mattresses.
As I have explained in my previous comments, money only moves from person to person within any economy. When a person becomes wealthy all they did is move money from other people to themselves (this can be accomplished in various ways, and yes it may involve building infrastructure and hiring people). They are creating wealth for themselves but that only leaves less money in the economy for other people to earn/spend.
Nope.
You are SO..SO incorrect. That is flat-out WRONG.
Wealth is created, not just moved around. The size of the pie is increased.
Nice guns though...I wish I had one (or many)
I imagine those little kids have a problem handleing the recoil. AK-47's tend to KICK.
Everything I am saying is mathematically correct. Becoming wealthy is not a creation of money it is an accumulation of money that is already in circulation (it is just the currency supply moving from person to person).
The only time the size of the pie is increased is when in a fiat currency system economy the central bank increases the monetary base and/or banks increase the money supply via fractional reserve banking by creating more debt. Unfortunately the only thing that does is increase inflation and reduces the value of money, which hurts the working/poor class.
Inflation does not matter to rich people because they already have more money than they can spend.
This math?
